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General Assembly Substitute Bill No. 7361
January Session, 2019
AN ACT CONCERNING TH E ADOPTION OF MASTER PLANS BY TAX
INCREMENT DISTRICTS.
Be it enacted by the Senate and House of Representatives in General
Assembly convened:
Section 1. Section 7-339ee of the general statutes is repealed and the 1
following is substituted in lieu thereof (Effective October 1, 2019): 2
Prior to the establishment of a tax increment district and approval of 3
a district master plan for such tax increment district, the municipal 4
legislative body or the board of selectmen in the case of a municipality 5
in which the legislative body is a town meeting shall (1) consider 6
whether the proposed tax increment district and district master plan 7
will contribute to the economic growth or well-being of the 8
municipality or to the betterment of the health, welfare or safety of the 9
inhabitants of the municipality; (2) [at least ninety days prior to 10
establishing a tax increment district and approving the district master 11
plan for such tax increment district,] transmit the district master plan 12
to the planning commission or combined planning and zoning 13
commission of the municipality, [if any] as applicable, requesting a 14
study of the district master plan and a written advisory opinion. Such 15
written advisory opinion shall include a determination on whether the 16
plan is consistent with the plan of conservation and development of 17
the municipality adopted under section 8-23; (3) hold at least one 18
public hearing on the proposal to establish a tax increment district. 19 Substitute Bill No. 7361
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Notice of the hearing shall be published at least ten days prior to the 20
hearing in a newspaper having general circulation within the 21
municipality and shall include (A) the date, time and place of such 22
hearing, and (B) the boundaries of the proposed tax increment district 23
by legal description; and (4) determine whether the proposed tax 24
increment district meets the following conditions: 25
(A) A portion of the real property within a tax increment district 26
shall meet at least one of the following criteria: (i) Be a substandard, 27
insanitary, deteriorated, deteriorating or blighted area; (ii) be in need 28
of rehabilitation, redevelopment or conservation work; or (iii) be 29
suitable for industrial, commercial, residential, mixed-use or retail 30
uses, downtown development or transit-oriented development; and 31
(B) The original assessed value of a proposed tax increment district 32
plus the original assessed value of all existing tax increment districts 33
within the municipality may not exceed ten per cent of the total value 34
of taxable property within the municipality as of October first of the 35
year immediately preceding the establishment of the tax increment 36
district. Excluded from the calculation in this subdivision is any tax 37
increment district established on or after October 1, 2015, that consists 38
entirely of contiguous property owned by a single taxpayer. For the 39
purpose of this subdivision, "contiguous property" includes a parcel or 40
parcels of land divided by a road, power line, railroad line or right-of-41
way. A municipality may not establish a tax increment district if the 42
conditions in this subdivision are not met. 43
Sec. 2. Section 7-339ff of the general statutes is repealed and the 44
following is substituted in lieu thereof (Effective October 1, 2019): 45
(a) In connection with the establishment of a tax increment district, 46
the legislative body of a municipality shall adopt a district master plan 47
for each tax increment district and a statement of the percentage or 48
stated sum of increased assessed value to be designated as captured 49
assessed value in accordance with such plan. [The district master plan 50
shall be adopted at the same time that the tax increment district is 51 Substitute Bill No. 7361
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established, as part of the tax increment district adoption proceedings 52
set forth in sections 7-339cc to 7-339kk, inclusive.] Such legislative 53
body shall adopt such plan after receipt of a written advisory opinion 54
from the planning commission or combined planning and zoning 55
commission of the municipality requested pursuant to section 7-339ee, 56
as amended by this act, or ninety days after the date such request was 57
made, whichever is earlier. 58
(b) The district master plan shall include: (1) The boundaries of the 59
tax increment district by legal description; (2) a list of the tax 60
identification numbers for all lots or parcels within the tax increment 61
district; (3) a description of the present condition and uses of all land 62
and buildings within the tax increment district; (4) a description of the 63
public facilities, improvements or programs within the tax increment 64
district anticipated to be added and financed in whole or in part; (5) a 65
description of the industrial, commercial, residential, mixed-use or 66
retail improvements, downtown development or transit-oriented 67
development within the tax increment district anticipated to be 68
financed in whole or in part; (6) a financial plan in accordance with 69
subsection (c) of this section; (7) a plan for the proposed maintenance 70
and operation of the tax increment district after the planned capital 71
improvements are completed; and (8) the maximum duration of the 72
tax increment district, which may not exceed a total of fifty tax years 73
beginning with the tax year in which the tax increment district is 74
established. 75
(c) The financial plan for a district master plan shall include: (1) Cost 76
estimates for the public improvements and developments anticipated 77
in the district master plan; (2) the maximum amount of indebtedness to 78
be incurred to implement the district master plan; (3) sources of 79
anticipated revenues; (4) a description of the terms and conditions of 80
any agreements, including any anticipated assessment agreements, 81
contracts or other obligations related to the district master plan; (5) 82
estimates of increased assessed values of the tax increment district; and 83
(6) the portion of the increased assessed values to be applied to the 84 Substitute Bill No. 7361
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district master plan as captured assessed values and resulting tax 85
increments in each year of the plan. 86
(d) The district master plan may be amended from time to time by 87
the legislative body of the municipality. Such legislative body shall 88
review the district master plan at least once every ten years after the 89
initial approval of the tax increment district and the district master 90
plan in order for the tax increment district and the district master plan 91
to remain in effect. With respect to any district master plan that 92
includes development that is funded in whole or in part by federal 93
funds, the provisions of this subsection shall not apply to the extent 94
that such provisions are prohibited by federal law. 95
This act shall take effect as follows and shall amend the following
sections:
Section 1 October 1, 2019 7-339ee
Sec. 2 October 1, 2019 7-339ff
PD Joint Favorable Subst.